Wall Street sees a difficult first half of 2022

IIt was a momentous week as Wall Street wrapped up June, the second quarter and the first half of 2022. After trading both sides of the aisle on Monday, the Dow Jones Industrial Average (DJI) settled just in below breakeven as investors wondered if stocks were oversold or had bottomed out. Optimistic may durable goods orders pared those losses, although the tech sector fell further as the 10-year Treasury yield rose. The Dow Jones then fell 491 points on Tuesday, while the S&P 500 (SPX) and the Nasdaq Composite (IXIC) sold thus, after the retail and semiconductor sectors took a beating.

Modest gains were finally recorded for the Dow on Wednesday, but comments from Federal Reserve Bank of Cleveland President Loretta Mester suggesting support for a 75 basis point rate hike in July weighed. Additionally, revised gross domestic product (GDP) data for the first quarter showed that The US economy has contracted. A massive blow followed on Thursday, with the S&P 500 recording its worst first half since 1970, and the Dow and Nasdaq are having their worst quarters since March 2020 and December 2008, respectively. Inflation and a possible recession were still top of mind for traders on Friday. At noon, the three big clues were trying to start the third quarter with heavy weekly losses.

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Blue Chip Securities

A handful of blue-chip stocks were in the spotlight this week. Nike (NKE) was among them, entering the earnings confessional to report a quarterly up and down pace, although that was overshadowed by the weaker-than-expected company. revenue forecast for the current quarter. Meanwhile, Walgreens Boots Alliance (WBA) has abandoned plans to sell its UK business following a lack of suitable offers, while Merck (MRK) looked like a solid bet for bullish options. Apple (AAPL) also caught the eye, after JP Morgan Securities reiterated its rating “overweight”.

Movers and shakers

Spirit Airlines (SAVE) was a big player this week, after announcing its intention to accept Frontier’s (ULCC) enhanced cash and stock offer from $2.7 billion. Axsome Therapeutics (AXSM) surged after the Food and Drug Administration (FDA) proposed labeling of its drug candidate for depression. Meanwhile, Bed Bath & Beyond (BBBY) lost more than 20% after the departure of CEO Mark Trittonand Kohl’s (KSS) said it canceled a recentacquisition talks.

Employment data in brief next week

Although the markets will be closed on Monday for independence day, the first full week of July brings a slew of employment indicators, such as nonfarm payrolls and job openings data, an update on the unemployment rate, and labor force participation rate. active population. A few notable indexes are also available, including the S&P Global US Services Purchasing Managers Index (PMI). Meanwhile, the revenue register looks bare, with few names to report apart from Levi Strauss (LEVI), PriceSmart (PSMT) and WD-40 (WDFC). Besides, now might be a good time to reduce in shares using the S&P 500 as a benchmark.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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